Shreeji Dye-Chem Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2013

A Basis of preparation of financial statements and revenue recognition:-

1 The financial statements have been prepared under the historical cost convention in accordance with the ; generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company.

2 Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed by the company.

3 Revenue is recognized when the consideration receivable from rendering services is reasonably determinable. When such consideration is not determinable with reasonable limits, the recognition of revenue is postponed.

B Fixed Assets & Depreciation / Amortization:

1 Fixed assets are stated at cost of acquisition or construction net of Excise, Value Added Tax less ; accumulated depreciation. All cost, till commencement of commercial production is capitalized. :

2 Depreciation on fixed assets is provided on the Written Down Value Method at the rates and in the manner j prescribed in Schedule XIV of the Companies Act 1956.

3 Pursuant to accounting standard 28 " Impairment of Assets" issued by the ICAI, The Company has a system to review the carrying cost of all the assets vis-a-vis recoverable value and impairment loss, if any is charged to Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in estimate of recoverable amount.

C Investments ;

1 Long term Investments are stated at cost of acquisition. Provision for diminution in the value of long term investments is made only if such decline is other than temporary in the opinion of the management.

2 Current Investments, if any, are stated at lower of cost and fair value determined on individual investment basis

3 Investments in shares of foreign subsidiaries are expressed at the rates of exchange prevailing at the time when original investments were made.

4 Dividend income is recognized when right to receive is established at the reporting date.

D Taxation:-

Taxation expense comprises current tax and deferred tax charge or credit. Provision for income tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. Advance tax and tax deducted at source are adjusted against provision for taxation and balance, if any, are shown in the balance sheet under respective heads.

E Deferred Taxation j

Deferred tax resulting from timing differences between book and tax profit is accounted for under the liability method at the current rate of Income tax to the extent that the timing differences are expected to crystallize as deferred tax charge/ benefit in the profit and loss a/c and as deferred tax Assets/Liability in the Balance-Sheet.

F Insurance Claim

Insurance and other claims to the extent considered recoverable are accounted for in the year of claim based on the amount assessed by the surveyor. However, claims and refund whose recovery cannot be ascertained with reasonable certainly, are accounted for on acceptance/actual receipts basis.

G Borrowing Cost -

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capital board of the cost of such assets. A qualifying asset is one that necessarily take substantial period of time to gains for intended use. All other borrowing cost are charged to Revenue.

[ Use of Estimates

In preparing Company''s financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period:; actual results could differ from those estimates.

Foreign Currency Transactions

Transactions in Foreign Currencies are generally recorded by applying to the Foreign Currency Amount, the exchange rate prevailing at the time of the transactions.

Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes, Contingent assets are neither recognized nor disclosed in the financial statements.

[ Related Party Transaction

Parties are considered to be related if at any time during the year; one party has the ability to control the other party or to exercise significant influence over the other party in making financial and / or operating decision.

Earnings Per Share (EPS)

The earning considered in ascertaining the company''s EPS comprises the net profit for the period after tax attributed to equity shareholders. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

1 Government Grants

Grants received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter''s contribution are credited to capital reserve. Revenue grants are recognized in the profit and loss account in accordance with the related schemes and in the period in which these are accrued and it is reasonably certain that the ultimate collection will be made.